Crypto exchange Coinbase (COIN) surged over 8% on Monday after market closing on news that the stock will be included in the broad-market S&P 500 stock index.
The company would replace Discover Financial starting on May 19, according to an S&P press release. Discover Financial is being acquired by Capital One.
The S&P 500 tracks 500 of the largest publicly traded companies in the U.S. across several sectors, including tech, healthcare, finance and more. Prominent names in the index include Apple, Microsoft, Amazon and Google. COIN, at a market cap of nearly $53 billion, currently trades on the Nasdaq exchange.
The inclusion would be a significant milestone for the digital asset industry, giving millions of average investors and model portfolios exposure to a crypto-focused company.
“COIN about to be in every portfolio in America,” Juan Leon, senior investment strategist at asset manager Bitwise, said in an X post. “The S&P 500 inclusion is going to force 7x the daily trading volume into [the] stock.”
Shares of the company jumped to as high as $225 following the reports, up 8.6% in post-market hours and adding to the nearly 4% gain on Monday.
UPDATE (May 12, 21:50 UTC): Adds analyst comment, detail about Capital One acquiring Discover Financial.